1 / 33

Investor Presentation

Investor Presentation. Denver Gold Forum September 20, 2010. Avocet at a glance. Doup (1.0 Moz). Seruyung. NORTH LANUT & Bakan (1.0 Moz). PENJOM (1.2 Moz). INATA ( 1.8 Moz). Producing mine Exploration project. Three operational gold mines Inata (Burkina Faso) Penjom (Malaysia)

gary-stuart
Télécharger la présentation

Investor Presentation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Investor Presentation Denver Gold Forum September 20, 2010

  2. Avocet at a glance Doup (1.0 Moz) Seruyung NORTH LANUT & Bakan (1.0 Moz) PENJOM (1.2 Moz) INATA (1.8 Moz) Producing mine Exploration project • Three operational gold mines • Inata (Burkina Faso) • Penjom (Malaysia) • North Lanut (Indonesia) • Pipeline of advanced exploration projects • Including Tri-K project in Guinea • Closing in on 300,000 oz p.a., and inclusion in FT Gold Mines Index (Figures represent Mineral Resources, 100% basis) Bélahouro Tri-K (Koulékoun) (0.7 Moz) 2

  3. Corporate overview • Largest shareholders • Elliott 16.2 % • Datum 12.4 % • BlackRock 6.5 % • JP Morgan 6.4 % • Management 3.5 % • Invesco 2.9 % • Market statistics** • OSE & AIM - AVM 131.2 p • Market capitalisation US$400.1 m • Shares outstanding 196.5 m • Cash (30.06.10) US$45.3 m • Net debt (30.06.10) US$44.7 m • Enterprise value US$444.8 m Share price performance (12 months) Head office: London Financial year end: 31st December • Directors • Nigel McNair Scott, Chairman • Harald Arnet • Mike Donoghue • Russell Edey • Robert Pilkington • Barry Rourke • Brett Richards, CEO • Mike Norris, Finance Director • Senior Management • Brett Richards* • Hans-Arne L’orange* • Mike Norris* • Peter Flindell* • Richard Gray* • Dean Stuart 3 * EXCO member ** All figures as of 10.09.10, unless otherwise stated

  4. Board of Directors and Senior Management Senior Management Board of Directors 4

  5. West Africa region 5

  6. Gold Mining in Burkina Faso • 2003 mining code • 3-4 year tax holiday • 20% corporation tax • Rapidly expanding mining sector • Only 1 gold mine operating in 2007 • 6 gold mines to be operational by end 2010 • Mines to produce over 500,000 ounces in 2010 • Over 20 listed gold producers and explorers operating in country Essakane (IAMGOLD) Inata (Avocet) Taparko (High River) Kalsaka (Cluff) Mana (SEMAFO) Youga (Etruscan) Prospective Birimian geology Gold deposit / resource Producing gold mine in 2010 6

  7. Inata – ramp-up on track • First gold pour: 20 Dec. 2009 • H1 2010 production: 51,063 oz • Ramp up completed ahead of schedule • H2 2010production: 12,000 oz per month • Mining update: • Owner-operated fleet to be doubled in size • 24 hr/day operations since Oct. ‘09 • Plant update: • Ongoing fine tuning of operation, 1 NI 43-101-compliant, reserves and resources as of July 2007.

  8. Inata, Burkina Faso • H1 ‘10 production: 51,063 oz • Q2 production of 31,225 oz • June production: 11,491 oz • Ramp up continues on schedule to average 12,000 oz per month in H2 • Initial cash costs of US$569/oz • Q2 cash costs include period of production ramp up • Guidance of US$525-575/oz 8

  9. Inata – operations update • Safety • +2 million LTI-free hours worked • Mining • Over 1 million tonnes of ore mined • 2nd mining fleet to be operational in H2 2010 • Stripping of Inata Central commenced in July 2010 • Processing • Successful debottlenecking in H1 – plant operating at 240 tph in June 2010 • Design capacity of 287 tph expected by end of Q3 2010 • Gold recoveries continue above 93%

  10. Exploration – West Africa Inata 200,000 m drilling programme to evaluate near mine extensions and satellite deposits within mining licence • Bélahouro • Airborne geophysical survey complete & being analysed; results from 20,000m drilling programme due in Q3, and maiden resource estimate due Q4 2010 Inata/Bélahouro • Guinea • Target generation in H1 leading towards scout drilling programme at both Tri-K and Balandougou projects Balandougou Tri-K Exploration budget for H2 2010 Estimated at US$16m

  11. South East Asia region

  12. Penjom, Malaysia • Mining • Lower mined grades compensated for by increase in tonnage mined • Processing • Successfully processing at higher rate • Gravity circuit upgraded to increase recovery • Planned refurbishment of RIL tanks progressing on schedule; will aid recoveries going forward • Exploration upside • Orebody open along strike and at depth • Potential for high grade ore from underground to supplement open pit • Production • H1 cash costs higher than H2 forecast 1 JORC-Compliant Ore Reserves as of 31 March ‘09, and Mineral Resources, as of 31 December ‘09. Figures on a 100% basis.

  13. Penjom, Malaysia • H1 gold production • 24,130 oz • Cash cost: US$949/oz • Mining update • Development of additional areas resulted in lower ore mined in H1 • Access to higher grade areas of ore delayed into Q3 • Processing update • Head grade of 2.50 g/t • Estimated average production of 4,500 oz per month in H2

  14. North Lanut, Indonesia • Mining • Mining from two pits – Riska and Rasik • Rasik pit yielding more ounces than forecast • Effendi pit still to be mined • Leach pads • Reduced ore grades compensated for by greater understanding and improved management of various ore types • Recoveries improved to 72%, up from 42% in same period in last year • Production • Production increases expected in H2 1 JORC compliant Ore Reserves and Mineral Resources, as of 31 Mar ‘09. Figures on a 100% basis.

  15. North Lanut, Indonesia • H1 gold production • 22,554 oz • Cash cost: US$656/oz • Mining update • Greater flexibility in mining two pits • Rasik: mining scheduled to reach higher grade areas in H2 2010 • Processing update • Recoveries and costs have benefited from improved treatment techniques • Full year guidance unchanged at 48,000 oz

  16. Exploration – South East Asia South East Asia Drilling to recommence following receipt of IUP licences at Doup and Seruyung • Doup • Infill drilling campaign in H2 to target +2.0 Moz resource Seruyung Doup • Seruyung • 3,000m drilling programme in H2 to generate initial JORC compliant Mineral Resource estimate Exploration budget for H2 2010 Estimated at US$3m

  17. H1 2010 headlines 17

  18. H1 2010: financial highlights *Note: due to change the financial year end reporting, H1 2009 represents the period April-September 2009 18

  19. Impact of Inata – financial results

  20. Impact of Inata – operational results • Group production more than doubled compared with South East Asia stand alone • Inata’s lower cash cost has more than compensated for increases at Penjom and North Lanut 20

  21. Financial summary 1 As of 30 June ‘10

  22. Strategic direction Process • Standard Chartered Bank engaged • Memorandum of Information circulated to interested parties • Expressions of interest expected in Q3 • Step out drilling & Inata remodelling underway • Preliminary scoping study on expansion in H2 • Exploration budget of up to US$16m in H2 2010 • Full review of M&A landscape in West Africa

  23. Outlook

  24. Appendices

  25. Cautionary note • DISCLAIMER • The information contained in this confidential document ("Presentation") has been prepared by Avocet Mining PLC (the "Company"). This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000 and therefore it is being delivered for information purposes only to a very limited number of persons and companies who are persons who have professional experience in matters relating to investments and who fall within the category of person set out in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or are high net worth companies within the meaning set out in Article 49 of the Order or are otherwise permitted to receive it. Any other person who receives this Presentation should not rely or act upon it. By accepting this Presentation, the recipient represents and warrants that they are a person who falls within the above description of persons entitled to receive the Presentation. • While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers give, have given or have authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as "Information") and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this Presentation. • Neither the issue of this Presentation nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any transaction and the right is reserved to terminate any discussions or negotiations with any prospective investors. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent. www.avocet.co.uk

  26. Profit and exceptionals

  27. Cashflow statement

  28. Balance sheet

  29. Group Reserves and Resources * Mineral Resources include Reserves. Note: the above figures are rounded up/down where appropriate. Dates for reserve and resource estimates are outlined in the following slides

  30. Burkina Faso Reserves and Resources * Mineral Resources include Reserves. Figures as at 31 December 2009 (Reserves were calculated at a 0.8 g/t Au cut-off and a stock pile is developed for all low grade ore (0.5 – 0.8 g/t Au) that will be processed towards the end of the mine’s life.) Note: the above figures are rounded up/down where appropriate.

  31. Guinean Reserves and Resources * Mineral Resources include Reserves. Resources as at 31 December 2009 Note: the above figures are rounded up/down where appropriate.

  32. Malaysian Reserves and Resources * Mineral Resources include Reserves. Reserves and resources as at 31 December ‘09. Note: the above figures are rounded up/down where appropriate. Above table includes stockpiles and Kurnia in the resources

  33. Indonesian Reserves and Resources * Mineral Resources include Reserves. Resources include North Lanut, Bakan and Doup projects, and as at 31 December 2009 Reserves figures are for North Lanut only (as at 31 December ‘09). Attributable ounces are based on 80% ownership of North Lanut and Bakan, 60% ownership of Doup. Note: the above figures are rounded up/down where appropriate.

More Related